The World Bank is supporting Bangladesh to improve planning and management of the rapid urbanization process in Bangladesh as urban population in the country has doubled since 1990. The Municipal Services Project supported by the World Bank continues to provide support to pourashavas and city corporations to improve urban infrastructure and delivery of municipal services coupled with capacity building of these local government bodies.
Started in 1999, the Municipal Services Project has financed basic infrastructure, such as water supply, roads and street lighting in about 130 municipalities, and repaired and rehabilitated flood-damaged infrastructure in more than 195 towns following the devastating floods of 1998, 2004 and 2007.
More than half of urban local governments in Bangladesh have received assistance from the project via Local Government Engineering Department (LGED) and the Bangladesh Municipal Development Fund (BMDF), said a release.
With the full disbursement of the original credit of $138.4 million, the World Bank has provided an additional financing of $42 million to fund similar urban sub-projects through the Bangladesh Municipal Development Fund and for preparatory studies for a follow on project.
The World Bank Board approved the $ 42 million additional funding for Municipal Services Project in June last year aimed at financing urban infrastructure improvements to around 170 towns and improve the municipal financial and management capacity.
A World Bank team and the government recently reviewed the project implementation and noted satisfactory progress in the subproject preparation.
The BMDF has already started a series of procurement activities for works in numerous municipalities.
The BMDF appointed a Managing Director following signing of the additional financing agreement.
The LGED will start implementing the technical assistance components under Additional Financing.
The technical assistance will include provisions for studies and other activities that will lead on to the preparation of the next generation of urban development activities and financing, as rapid urbanization continues in Bangladesh. 

News: The Independent/ Bangladesh/ Mar-07-2011